AASB 2021-2 amends AASB Standards to improve accounting policy disclosures and clarify the distinction between accounting policies and accounting estimates.
Specifically, AASB 2021-2 amends:
• AASB 7, to clarify that information about measurement bases for financial instruments is expected to be material to an entity’s financial statements;
• AASB 101, to require entities to disclose their material accounting policy information rather than their significant accounting policies;
• AASB 108, to clarify how entities should distinguish changes in accounting policies and changes in accounting estimates;
• AASB 134, to identify material accounting policy information as a component of a complete set of financial statements; and
• AASB Practice Statement 2, to provide guidance on how to apply the concept of materiality to accounting policy disclosures.
This Standard applies to annual reporting periods beginning on or after 1 January 2023. The amendments to individual Standards may be applied early, separately from the amendments to the other Standards, where feasible.